Most real estate financial analysis is relatively straightforward, and you’ll often hear industry veterans say something along the lines of, “Real estate isn’t rocket science!” And while this might be true, one of the most complex, if not the most complex topic in real estate financial analysis is real estate equity waterfall modeling, and […]
When you’re working for a private equity real estate firm that gets paid on the back-end through promoted interest (or potentially fees associated with selling the property), the deals you underwrite are going to be evaluated based on projected cash flows, usually over a 3-10 year period. And within those projected cash flows, a […]
The internal rate of return, or IRR, is one of the most heavily scrutinized return metrics in all of commercial real estate. Private equity firms raise capital with promises of certain IRR values to investors. And promoted interest, often the lifeblood of a private equity real estate shop, is going to depend on what […]
When applying for a real estate analyst or associate job at a private equity real estate or brokerage shop, just writing “proficient in Microsoft Excel” on your resume usually won’t cut it these days. And during the interview process, to test your knowledge in real-time, many commercial real estate firms will give potential analyst […]
Commercial real estate investors can sometimes sound like they have their own language, and if you’re just breaking into the industry (or trying to), it can be intimidating to feel like an outsider looking in. When I first broke into the industry, there was a lot of terminology that wasn’t included in my university […]
Commercial real estate valuation can be a tricky subject. While brokers and investors tend to arrive at a valuation based on target return metrics, when appraisers get in the game, the valuation techniques used can be a different story. And for deals that will be acquired with debt (as most commercial real estate properties […]
Choosing a career path is not easy. When you’re just graduating from college or in the first few years of your career, there can be a ton of pressure to settle down and find something that not only pays the bills and has income upside, but is also something you enjoy and can see […]
If you’re new to the real estate industry altogether or moving from the residential part of the business, commercial real estate loans can feel like a whole different animal than what you’re used to. Instead of just your your standard, 30-year, fixed-rate loan that you’ll often see on a residential home loan, commercial real […]
Ah, the cap rate. One of the most widely used metrics in the real estate investment industry, and a benchmark that many brokers and investors use to value a real estate deal. But at the end of the day, how important is a cap rate, really? And should you really be using it to […]
Private equity real estate companies are companies that invest in real estate on behalf of equity investors, usually pooling together capital from multiple investors to buy large commercial properties like multifamily apartments, office buildings, retail shopping centers, and industrial warehouses. And these companies are compensated to both find opportunities to invest in on behalf […]
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